EUR/USD off highs, back below 1.1600

By FXStreet Despite the ongoing correction lower, EUR/USD keeps its bid tone albeit off earlier highs near 1.1620.

EUR/USD upside backed by USD-selling

The broad-based selling bias around the greenback seems to be taking a breather during the European afternoon, prompting sellers to step in and cash part of the previous spike beyond the 1.1600 barrier.

Data wise in Euroland, EMU’s Producer Prices have surprised to the upside during March, rising 0.3% inter-month and contracting 4.2% on a yearly basis. Across the pond, the IBD/TIPP Optimism index is due followed by Total Car Sales and the speech by Cleveland Fed L.Mester.

EUR/USD levels to watch

The pair is now advancing 0.45% at 1.1586 and a break above 1.1615 (2016 high May 3) would target 1.1713 (high Aug.24 2015) and finally 1.2110 (2015 high Jan.2). On the flip side, the immediate support aligns at 1.1358 (20-day sma) followed by 1.1220 (55-day sma) and then 1.1213 (low Apr.25).
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Source:: FX Street